EXTREME HOME TAKEOVER

ABC’s Extreme Makeover: Home Edition producers never estimated the tax bill on the houses featured on the show, increasing their values and subsequent tax assessments out of the income range of the contestants, which have resulted in two foreclosures and several home sales.

One house cost $450,000 to build, it turns out that after such a tremendous bounty is showered upon grateful and lucky families such as the Harpers, these folks are sent along their merry way. They are on their own financially, after the show bestows upon them a gold mine that turns very quickly into a money pit. Unfortunately there was still $250,000 dollars left on the old mortgage that they had to pay, plus they’re paying property taxes for the value of the new home because it’s worth more than the old home was. On top of that, utility bills now cost anywhere from $500 to $700 dollars a month.

The idea behind the television program is wonderful, but I wonder whether the show’s participants are really prepared to own and maintain such elaborate homes (or mansions). Those who experience a sudden change in fortune often find themselves in a vulnerable situation: when you’re steeped in financial difficulty and suddenly receive a massive windfall, you’re susceptible to financial stress. Without some solid financial guidance and direction, those in this quandary can eventually find themselves back to square one.

The highway to hell is paved with good intentions…..brother can you spare a dime.
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